922 KAR 1:500reg. Educational and training vouchers

      Section 1. Definitions. (1) "Cost of attendance" is defined by 20 U.S.C. 1087II.

      (2) "Educational and training voucher" means resources provided to an eligible individual to meet educational or training purposes as specified under 42 U.S.C. 677(i).

      (3) "Foster care" is defined by KRS 620.020(5) and 45 C.F.R. 1355.20(a).

      (4) "Institution of higher education" is defined by 20 U.S.C. 1001 and 1002.

      (5) "Tuition waiver" means waiver of tuition and mandatory fees for Kentucky foster or adopted children pursuant to KRS 164.2847 and 922 KAR 1:450.

 

      Section 2. Eligibility. (1) An individual shall be eligible to receive an educational and training voucher if the individual:

      (a) Is committed to the cabinet in accordance with:

      1. KRS 620.140(1)(d); or

      2. KRS 610.110(6);

      (b) Was adopted from foster care after attaining sixteen (16) years of age; or

      (c) Left foster care upon attaining eighteen (18) years of age.

      (2) An individual shall maintain eligibility until twenty-three (23) years of age if the individual:

      (a) Receives an educational and training voucher prior to reaching twenty-one (21) years of age; and

      (b) Is enrolled in an institution of higher education and is making satisfactory progress towards completion:

      1. As determined by the institution of higher education; and

      2. In accordance with Section 3(2)[3(3)] of this administrative regulation.

 

      Section 3. Application Process. (1) To request an education and training voucher, an applicant shall submit a completed ["]DPP-334, Request for Educational and Training Voucher Funds["] to the cabinet:

      (a) Upon initial application for enrollment into an institution of higher education;

      (b) When the student transfers to another institution of higher education; or

      (c) If a student has not been enrolled continuously at the same institution of higher education.

      (2)(a) To maintain eligibility in accordance with Section 2 of this administrative regulation, for each semester or equivalent term of instruction, the cabinet shall contact the National Student Clearinghouse to verify an applicant’s enrollment in an institution of higher education.

      (b) If verification cannot be obtained through the National Student Clearinghouse in accordance with paragraph (a) of this subsection, an applicant shall:

      1. Contact the applicant’s institution of higher education; and

      2. Request that written confirmation of enrollment from the institution of higher education be sent to the cabinet[An applicant shall submit a new "DPP-334, Request for Educational and Training Voucher Funds" for each semester or equivalent term of instruction.

      (3) To maintain eligibility, as specified in Section 2 of this administrative regulation, for each semester or equivalent term of instruction, an individual shall submit to the cabinet a "DPP-335, Monthly Academic Standing and Enrollment Verification" on a monthly basis to the address on the form].

 

      Section 4. Allowable Payments. (1) An educational and training voucher shall be used to:

      (a) Assist an eligible individual to prepare for and enter an institution of higher education, including:

      1. A fee for an educational aptitude examination to qualify for or apply to an institution of higher education;

      2. An entrance or application fee required by an institution of higher education;

      3. An enrollment fee or deposit required by an institution of higher education;

      4. Cost of an educational aptitude course to prepare the eligible individual for an examination as specified in this subsection; or

      5. An expense, in addition to an expense specified in subparagraphs 2 and 3 of this paragraph, required for entrance by the institution of higher education; or

      (b) Pay for the cost of attendance at an institution of higher education.

      (2) An educational and training voucher shall not exceed the lesser of $5,000 per year or the total cost of attendance per year.

      (3) To the extent that funds are available, the cabinet shall authorize payment for an application for an educational and training voucher to an eligible individual.

      (4) In accordance with 42 U.S.C. 677(d)(2), an educational and training voucher shall not be approved for the same purpose as a tuition waiver or other student financial aid.

 

      Section 5. Service Appeal. An applicant who is determined ineligible for an educational and training voucher shall have access to an administrative hearing in accordance with 922 KAR 1:320.

 

      Section 6. Incorporation by Reference. (1)[The following material is incorporated by reference:

      (a)] "DPP-334, Request for Educational and Training Voucher Funds", 10/16, is incorporated by reference[edition 8/03"; and

      (b) "DPP-335, Monthly Academic Standing and Enrollment Verification, edition 8/03"].

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Department for Community Based Services, 275 East Main Street, Frankfort, Kentucky 40621, Monday through Friday, 8 a.m. to 4:30 p.m.

 

ADRIA JOHNSON, Commissioner

VICKIE YATES BROWN GLISSON, Secretary

      APPROVED BY AGENCY: May 26, 2016

      FILED WITH LRC: June 3, 2016 at noon

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall, if requested, be held on July 21, 2016, at 9:00 a.m. in the Health Services Auditorium, Health Services Building, First Floor, 275 East Main Street, Frankfort, Kentucky. Individuals interested in attending this hearing shall notify this agency in writing by July 14, 2016, five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. The hearing is open to the public. Any person who attends will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to attend the public hearing, you may submit written comments on the proposed administrative regulation. You may submit written comments regarding this proposed administrative regulation until close of business August 1, 2016. Send written notification of intent to attend the public hearing or written comments on the proposed administrative regulation to:

      CONTACT PERSON: Tricia Orme, Office of Legal Services, 275 East Main Street 5 W-B, Frankfort, Kentucky 40601, phone [phone], fax [phone], [e-mail].

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Agency Contact: Elizabeth Caywood

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation establishes eligibility and an application process, specifies allowable uses, and provides a procedure for administrative hearings pertaining to the educational and training vouchers.

      (b) The necessity of this administrative regulation: This administrative regulation is necessary to establish eligibility and an application process, specify allowable uses, and provide a procedure for administrative hearings pertaining to the educational and training vouchers.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation conforms to the content of the authorizing statutes by establishing eligibility, application, payment, and appeals for the educational and training voucher applicants.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation assists in effective administration of the statutes by establishing eligibility, application, payment, and appeals for educational and training voucher applicants.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: The amendment to this administrative regulation clarifies the process by which an applicant requests an educational and training voucher and revises the process by which the cabinet verifies an applicant’s enrollment in an institution of higher education. A youth has historically had to complete the DPP-335 to verify enrollment for the voucher. The new process proposed within this amendment will utilize the National Student Clearinghouse database to verify a youth’s enrollment with an institution of higher education, or in those infrequent instances that the Clearinghouse is unable to verify a youth’s enrollment, the institution will be contacted to provide the verification.

      (b) The necessity of the amendment to this administrative regulation: The amendment to this administrative regulation is necessary to clarify application requirements and streamline the enrollment verification process. The proposed enrollment verification process is reflective of other states practices (i.e., national trend), and it is anticipated to reduce the opportunity for fraud within the program, alleviate administrative burdens for all parties, and improve normalcy for the youth.

      (c) How the amendment conforms to the content of the authorizing statutes: This administrative regulation conforms to the content of the authorizing statutes by clarifying the processes for application and verification of enrollment for educational and training vouchers.

      (d) How the amendment will assist in the effective administration of the statutes: This amendment will assist in the effective administration of the statutes by clarifying the process by which educational and training vouchers are requested and improving programmatic efficiencies and integrity.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: The amendment to this administrative regulation will affect those foster and adoptive youth who apply for and receive educational and training vouchers. There are typically 100-150 youth who receive a voucher each year. For calendar year 2015, there were 165 youth who received a voucher. This amendment will also affect institutions for higher education.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: The timing of application submissions will be clarified for affected youth through this administrative regulation. The burden associated with enrollment verification requirements of youth applying for educational and training vouchers will also be reduced through the cabinet’s use of the National Student Clearinghouse. Institutions of higher education will likewise experience a reduced administrative burden.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): The amendment to this administrative regulation will not impose a new or additional cost on affected entities; rather, affected entities should realize reduced administrative burden.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Application requirements, specifically when an application is necessary, will be clarified for youth. In addition, historically, youth applying for educational and training vouchers have been required to submit a monthly academic standing form. This has been reported to make youth feel segregated and different from their peers. The removal of the requirement to complete the DPP-335, as proposed in this regulatory amendment, will allow foster and adoptive youth to have an experience more like their peers. Administrative burdens on post-secondary education institutions will also be reduced through this proposed new verification process.

      (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

      (a) Initially: The administrative body projects a cost increase of $500 and $750 per year for the cabinet to verify student enrollment through the National Student Clearinghouse (i.e., approximately $2.50 per query). The revised verification process will prevent fraudulent activity and reduce administrative burden associated with the former process, offsetting costs associated with fees accrued through the use of the National Student Clearinghouse. The costs will be absorbable.

      (b) On a continuing basis: The administrative body anticipates ongoing costs associated with this regulatory amendment will be similar to the initial costs of implementation as outlined in response to item (5)(a).

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: The implementation and enforcement of this administrative regulation are supported through federal funds under Title IV-E of the Social Security Act. Vouchers are 100% federally funded.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:

The minimal costs associated with the cabinet’s use of the National Student Clearinghouse will not require an increase in fees or funding. The costs will be absorbable within existing appropriations.

      (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: This administrative regulation does not establish any fees or either directly or indirectly increase any fees.

      (9) TIERING: Is tiering applied? Tiering is not applied as this administrative regulation is applied in a like manner statewide.

 

FEDERAL MANDATE ANALYSIS COMPARISON

 

      1. Federal statute or regulation constituting the federal mandate. 42 U.S.C. 677

      2. State compliance standards.

KRS 194A.050(1)

      3. Minimum or uniform standards contained in the federal mandate. 42 U.S.C. 677

      4. Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate? This administrative regulation does not impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate.

      5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. This administrative regulation does not impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

      1. What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Cabinet for Health and Family Services, Department for Community Based Services is impacted by this administrative regulation.

      2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 194A.050(1), 42 U.S.C. 677

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This administrative regulation will generate no new revenues for the first year.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation will generate no new revenues for subsequent years.

      (c) How much will it cost to administer this program for the first year? The administrative body projects a cost increase of $500 and $750 per year for the cabinet to verify student enrollment through the National Student Clearinghouse (i.e., approximately $2.50 per query). The revised verification process will prevent fraudulent activity and reduce administrative burden associated with the former process, offsetting costs associated with fees accrued through the use of the National Student Clearinghouse. The costs will be absorbable within existing agency appropriations.

      (d) How much will it cost to administer this program for subsequent years? The administrative body projects costs associated with the implementation of this administrative regulation will be vary from year to year, but will remain consistent with the projections in item (3)(c).

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation:

Notation

      RELATES TO: KRS Chapter 13B, 164.2847, 610.110(6), 620.020(5), 620.140(1)(d), 45 C.F.R. 1355.20(a), 20 U.S.C. 1001, 1002, [Sec.]1087II, 42 U.S.C. 677(d)(2), (i)

      STATUTORY AUTHORITY: 194A.050(1)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 194A.050(1) authorizes the secretary of the Cabinet for Health and Family Services to promulgate, administer, and enforce those administrative regulations necessary to implement programs mandated by federal law or to qualify for the receipt of federal funds and necessary to cooperate with other state and federal agencies for proper administration of the cabinet and its programs. In addition, 42 U.S.C. 677(i) makes available vouchers for education and training to youths who have aged out of foster care or were adopted from foster care at age sixteen (16) or older. This administrative regulation establishes eligibility and an application process, specifies allowable uses, and provides a procedure for administrative hearings pertaining to the educational and training vouchers.